Know The Impact Of Interest Rates On Purchasing Power
The interest rate you secure when buying a home not only greatly impacts your monthly housing cost, but also impacts your purchasing power.
Purchasing power, simply put, is the amount of home you can afford to buy for the budget you have available to spend. As rates increase, the price of the house you can afford to buy will decrease if you plan to stay within a certain monthly housing budget.
The chart below shows the impact that rising interest rates would have if a buyer planned to purchase a $300,000 home while keeping his/her principal and interest payments between $1,520-$1,533 a month. With the interest rate going up buyer cannot afford that house anymore and has to go with the lower priced homes.
If you are considering buying a home, act now to get the most house for your hard-earned money!
Author:Diana Polovko Phone: 984-833-9233 Dated: February 23rd 2019 Views: 513 About Diana: Honesty, integrity, and hard work are the key elements of my business. Behind every home sale or pur...
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" My name is Dee. Laura helped us find our new home in one of our favorite neighborhoods. She REALLY went over and beyond for us with negotiations. She was able to have all of our demands met plus more. She made us comfortable with the whole home-buying process. She answered any questions no matter how many times we asked them (sometimes the same question). She would explain everything to us in a way that we could understand. Just out generosity she found us discounts on services that we could use like the inspection. Even once we closed on our house she still would check in on us to see if we needed anything."